Is the total industrial investment in Pakistan so far of Rs. 940 billion, or more or less in reality? In dollar terms that comes to 15 billion at the current exchange rate, and that is not much if the total foreign investment is also taken into account.

But according to a survey conducted by the Federal Ministry of Industries and Production, the total industrial investment is that much and 57 per cent of that investment is in Sindh with Punjab having a 34 per cent share of that investment.

Mr Tariq Ikram, chairman of the Export Promotion Bureau, who revealed the contents of the survey to the members of the SITE said while Sindh has a 57 per cent of the investment the number of industrial units it has is only 12 per cent of the total and Punjab with 34 per cent of the investment has 84 per cent of the units, as they were mostly small.

Mr Haroon Faruqi, president of the SITE Association of Industry, said the SITE alone had a total investment of Rs.300 billion and paid Rs 2 billion daily as taxes and revenues to the government.

We do not know if the SITE has more than half the total investment of Rs 536 billion in the whole of Sindh but its members are certainly not paying Rs 2 billion daily as taxes and duties. If they do the total taxes paid by SIRE would be around Rs 600 to 700 billion annually, while the total of the federal taxes projected for the current year is Rs 466 billion. And the total provincial taxes in Sindh is not very large either.

All that brings into question the actual figure of investment in Pakistan. Is the figure of Rs 940 billion the book value of the investment as shown to the income tax authorities and the banks?

If we allow for sizeable kickbacks at the time of importing the machinery and over-invocing the imports and the inflated cost of construction of the factory building and company headquarters, what will be the real investment? How much has been the depreciation after the factories had been set up over a long period of time?

Above all, what about the 4,000 sick industrial units which are in various state of ailment or in partial or total disuse? Some of them have become unfit for use following changes in technology, consumer preferences for other products or far cheaper imports.

If the total worth of the investment in SITE, the oldest industrial estate in the country, is that much what is the worth of its equipment today?

A new survey is needed and the ministry of industries should undertake that earnestly with the full cooperation of industrialists.

When their is a great deal of talk of new investment and industrial zones at a high cost, the old industrial zones should not be ignored or neglected.

Meanwhile several new moves are to be made to promote industrial investment. Industries Minister Liaquat Jatoi speaks of investor getting all facilities, particularly in respect of infrastructure within three days through a one desk operation”. The old one-window talk has been given up as that never really worked for ten years, now he says. The federal cabinet is to receive a summary in this regard from the ministry of industries this week and act on it. A decision on that is easy as we do need far more investment but action on that is far more important.

He is also talking of new fiscal and non-fiscal incentives for the investors which he has not specified. Such incentives are imperative at a time of rapid globalization when import barriers are being removed and imports are becoming cheaper.

There is also a move for allowing duty-free import of machinery by overseas Pakistani investors. The number returning home is increasing and they ought to be encouraged and assisted in setting up industries.

But what is likely to happen is that a number of resident Pakistanis, too, will make use of such facilities in the names of their overseas, too, will make use of such facilities in the names of their overseas Pakistani friends and relations and set up their units here using the fiscal concessions for investment. What happened in respect of foreign exchange deposits kept there by resident Pakistanis in the names of their relatives abroad to escape tax investigations can also happened in respect of availing of fiscal concessions by overseas Pakistanis for investment.

Special fiscal concessions for investment by overseas Pakistanis will also militate against the policy of a level playing ground for all investors in the country. Hence there has been a consistent demand for lifting all taxes and duties on investment which has become imperative if investment is to come.

Mr Liaquat Jatoi says without extending genuine facilities and incentives there will not be substantial investment.

There is a kind of competition among Advisor on Investment for the Prime Minister Abdul Hafeez Shaikh, Industries Minister Liaquat Jatoi and Commerce Minister Humayun Akhtar in suggesting various incentives for investment. Meanwhile the report of the task force on investment set up by Hafeez Shaikh is awaited as that is expected to be comprehensive and should accomodate the suggestions of the industries and commerce ministers as well. Meanwhile the deal with Russia to raise the capacity of the Pakistan Steel from 1.1 million tones to 1.5 million tones is a welcome development. The capacity of the steel mills should be raised to a half of the ideal 3 million tonnes initially, if not the full 3 million tonnes.

And that is to be a symbol of larger economic cooperator with Russia following the visit of President Musharraf to Moscow - the first visit to Moscow by a Pakistanis president in 30 years.

What matters is how soon the indicated investment concessions will come and be fully operational in full earnestness. And how helpful will be the lower level officials and the provincial government officers.

Bureaucracy had in the past thwarted new investment or delayed that. Can the new one-desk approach overcome that problem? Constant monitoring of the progress in this sector is vital if the new one-desk approach overcome that problem? Constant monitoring of the progress in this sector is vital if the new policy is to be a success and employment creation in a large measures is to become a reality. Competition among the ministers is making suggestions for increasing investment incentive is welcome. What mattes is what happens in reality and how soon.